San Francisco, Jan 6 (SocialNews.XYZ) The US exercise and fitness equipment company Peloton will pay over $19 million in penalty for "knowingly" failing to report safety issues with its treadmill that resulted in the death of a child.
The US Consumer Product Safety Commission (CPSC) said in a statement that the settlement resolves its charges that Peloton knowingly failed to immediately report to the commission, as required by law, "that its Tread+ treadmill contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury to consumers".
Peloton recalled both of its treadmills -- the 'Tread' and 'Tread Plus' -- in 2021.
While the 'Tread' had a wobbly screen, the premium 'Tread Plus' caused multiple reports of injuries and, in one instance, the death of a child.
The Commission also charged that the company "knowingly distributed in commerce 38 Tread+ recalled treadmills using Peloton personnel and through third-party delivery firms".
Beginning in December 2018 and continuing into 2019, Peloton received reports of incidents associated with pull under and entrapment in the rear of the treadmills, including reports of injuries.
"Despite possessing this information, Peloton did not immediately report to the Commission. By the time Peloton filed a report with the Commission there were more than 150 reports of people, pets, and/or objects being pulled under the rear of the Tread+ treadmill, including the death of a child and 13 injuries, including broken bones, lacerations, abrasions and friction burns," said the Commission.
Peloton in August last year laid off roughly 780 employees, shut down several stores and hiked prices on bikes and treadmills.